Are ERC Funds Still Available? | Deadlines And Safe Steps

Many employers can still claim the credit by amending payroll tax returns, but late-2021 quarters can be blocked by strict filing cutoffs.

“ERC funds” usually means a payroll tax refund tied to the Employee Retention Credit. The wage period is over, yet refunds can still be claimed for past quarters if you file the right amended payroll return within the time limits.

This page is built for one thing: helping you decide, fast, whether your business still has a claim window left in 2026—and what to do next if it does.

Are ERC Funds Still Available In 2026? What Still Works

Yes, in many cases. Not for new wages, but for older quarters where the amendment window is still open. Think of availability in three checks:

• Quarter: 2020 and early 2021 are the main targets that can still be open.
• Deadline: Form 941-X time limits can close a quarter even when you qualify.
• Late-2021 rule: New claims for 2021 Q3–Q4 filed after Jan. 31, 2024 face a separate restriction.

What Counts As “ERC Funds” And How They Are Paid

The Employee Retention Credit is a refundable payroll tax credit. Refundable means the credit can exceed payroll taxes due for the quarter, so the balance can come back as a refund check or a credit on your payroll tax account.

Most retroactive claims run through payroll forms. Employers file quarterly payroll tax returns on Form 941, and most corrections use Form 941-X for the specific quarter being adjusted.

When Claims Are Still On The Table

Program window and quarter coverage

The IRS describes the credit as covering qualified wages paid after March 12, 2020 and before Jan. 1, 2022, with eligibility and credit amounts varying by period. Start at the IRS Employee Retention Credit page if you need the official definitions before doing your own math.

Form 941-X time limits

Even with eligible wages, you need an open correction window. The IRS says you generally can correct overreported payroll taxes by filing Form 941-X within 3 years of when the original Form 941 was filed, or 2 years from when you paid the tax reported on Form 941, whichever is later. Those limits—and the mechanics of amending—are laid out in the Instructions for Form 941-X.

That’s why many 2020 quarters are closed by 2026 for brand-new claims, while some 2021 quarters may still be open for employers who filed or paid later. Your own filing and payment dates decide the real cutoff.

Special restriction for 2021 Q3 and Q4

For the third and fourth quarters of 2021, timing can matter in a different way. In an IRS fact sheet on compliance provisions, the IRS states that no new ERCs claimed for those quarters will be allowed or refunded if filed after Jan. 31, 2024. The same IRS page says ERCs for those quarters filed after that date can’t be allowed or refunded after July 4, 2025, even when eligibility rules were met. That guidance is on the IRS FAQ on the One, Big, Beautiful Bill provisions.

Fast Eligibility Screen Before You Touch A Form

ERC is quarter-by-quarter. Start with a screen you can defend with records. Two common routes exist.

Route One: A government order limited operations

A qualifying order is a federal, state, or local order tied to COVID-19 that fully or partly suspended your operations. Save the order text, the effective dates, and a short note on what part of your business was limited.

Route Two: A gross receipts drop

This route compares quarterly gross receipts to the same quarter in 2019. The thresholds differ between 2020 and 2021, so keep your test quarter clear and tie totals back to your books.

Three quick deal-breakers

• No solid trigger: No qualifying order and no qualifying receipts drop for the quarter.
• Same wages counted twice: Wages used for PPP forgiveness or certain credits can’t be reused for ERC.
• Weak paper trail: You can’t tie the claim back to payroll registers and health plan costs.

Quarter Map For Planning Your Next Move

This table is a practical map for 2026 planning. It does not replace the time-limit rules in the 941-X instructions, since your filing and payment dates can shift a deadline.

Quarter	Typical status in 2026	Main timing gate
2020 Q2	Often closed for new claims	Form 941-X limitations window
2020 Q3	Often closed for new claims	Form 941-X limitations window
2020 Q4	Often closed for new claims	Form 941-X limitations window
2021 Q1	Sometimes open	Form 941-X limitations window
2021 Q2	Sometimes open	Form 941-X limitations window
2021 Q3	Mostly closed if filed after Jan. 31, 2024	Jan. 31, 2024 filing-date restriction
2021 Q4	Mostly closed if filed after Jan. 31, 2024	Jan. 31, 2024 filing-date restriction

How To File A Clean Claim When A Quarter Is Still Open

If your quarter is still open, treat the claim like a small audit file you’re building in real time. Keep it simple, tied to your payroll system, and easy to recreate.

Step 1: Pull wage and health plan data for the quarter

Export payroll registers with employee-level wages by pay date. Gather employer-paid health plan costs that attach to those employees for the same quarter.

Step 2: Build a wage map that avoids overlap

Create a one-page mapping sheet that shows which wages were used for PPP forgiveness or other credits, and which wages remain for ERC. Save it with a date stamp.

Step 3: Do the quarter math and lock it

Run the ERC math using the rules for that year and your employer size. Save a PDF copy of your worksheet so the numbers don’t drift later.

Step 4: Prepare and file Form 941-X

File a separate 941-X for each quarter you’re claiming. Follow the current line instructions and attach a clear explanation statement. Mailing proof matters, so use a trackable method that shows the postmark date.

Risk Traps That Show Up In Bad Claims

Marketing around ERC has been loud. The IRS has warned businesses about misleading pitches and high-pressure promoters. Read the IRS list of warning signs on Employee Retention Credit scams and use it as a filter before you sign anything.

• Big numbers with thin facts: Claims built on broad statements, not quarter-level triggers.
• Refund-size fees: A fee that rises only with the credit can push sloppy math.
• Late-2021 timing ignored: Claims for 2021 Q3–Q4 filed after Jan. 31, 2024 can be barred under the IRS FAQ guidance.

Records That Make Or Break A Claim File

You don’t need a binder of paper. You do need a file that answers three questions: why you qualify for that quarter, how you calculated the credit, and when you filed.

Record	What it proves	Best habit
Order copy and dates	Order-based eligibility	Save the PDF with the quarter in the filename
Gross receipts test sheet	Receipts-based eligibility	Tie totals to your books and keep a PDF export
Payroll registers	Qualified wage base	Keep raw exports and a clean summary tab
Health plan cost proof	Qualified health expenses	Link invoices to the quarter allocation
PPP and wage map	No wage overlap	Date-stamp the mapping and store with PPP docs
Signed 941-X packet	Exactly what was filed	Single PDF copy of the full mailing packet
Tracking / postmark proof	File date evidence	Screenshot tracking and log it in one place

If You Filed Already, The Next Step Depends On The Letter

Some claims sit pending. Some get paid. Some get disallowed.

Pending

Build your file now, while the facts are still easy to reconstruct. If the IRS asks a question later, you’ll answer faster.

Paid

Keep the records above. The IRS FAQ page on the One, Big, Beautiful Bill provisions notes that claims filed after Jan. 31, 2024 and refunded or credited before July 4, 2025 are not treated the same way under that section, while the IRS can still review claims through other compliance work.

Disallowed or Letter 105-C

The IRS FAQ page says appeals rights may be available through the IRS Independent Office of Appeals when you believe a late-2021 claim was filed on or before Jan. 31, 2024 and was wrongly disallowed. That same IRS page points to response instructions tied to Letter 105-C.

Proof of filing date is central here. Keep your postmark or submission evidence with the claim packet.

In 2026, the best way to think about ERC funds is simple: the program is over, deadlines are still real, and a valid quarter claim with clean records can still be paid. Start with the quarter map, then confirm your personal deadline using the Form 941-X time limits and the late-2021 IRS restriction.